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Xero End of the Year Tips

As the calendar page has turned to show us it is March– which, by the way, happens every year – we see and feel the anxiety levels start to kick-in for business owners and their bookkeeping, accounting and tax professionals. (Yes, even bookkeeping, accounting and tax professionals get anxiety). Wouldn’t it be great to change this annual occurrence of anxiety with just a few simple steps? Your anxiety can be eliminated, if you choose now to implement these tips.

How different would your business be IF…. Your record keeping is current and ready to hand over to your bookkeeping, accounting or tax professional sooner rather than later. At this time of the year, when businesses are pulling their year-end info together for their annual accounts and tax preparation we offer the following Tips.

Between now and the 31st March

Debtors and Creditors Invoices

Accounts Receivable (Debtors) Invoices

1. Login to Xero.

2. Click on Reports, Aged Receivables.

3. Ensure the following:

a. Date: March 2015.

b. Show By: Month name.

c. Ageing by: Invoice date.

4. Click the blue Update button and when the report has updated.

5. Click the blue Print Button.

6. Review the report and VOID any invoices that you know will not be paid. NOTE:Don’t VOID any invoices that were Brought Forward from the previous Financial Year as Bad Debts. Advise us of these.

Accounts Payable (Creditors) Invoices

1. Login to Xero.

2. Click on Reports, Aged Payables.

3. Ensure the following: –

a. Date: March 2015.

b. Show By: Month name.

c. Ageing by: Invoice date.

4. Click the blue Update button and when the report has updated.

5. Click the blue Print Button.

6. Review the report and VOID any invoices that you have raised you know will not be paid. NOTE:Don’t VOID any invoices that were Brought Forward from the previous Financial Year. Advise us of these.

Fixed Assets

Assets Sold or Disposed of

1. Click on Reports, All Reports and under Position Reports click on Depreciation Schedule.

2. Ensure the following: –

a. Date: March 2015.

b. Show Depreciation as: Actual

c. Show Asset: Name, number and type.

3. Click the blue Update button and when the report has updated.

4. Click the blue Print Button.

5. Review the report.

6. On the report highlight any assets that you have disposed of.

7. Scan and email this report to us advising us of the following:

a. Date the asset was disposed of.

b. Why it was disposed of e.g. Sold or Disposed of as Beyond Economical Repair etc.

Assets Purchased

8. Advise us of any Assets that were purchased and that do not appear on the Depreciation Schedule. Advise us of the following:

a. Name of Asset.

b. Type of Asset.

c. The Cost Price of the Asset (GST Inclusive).

d. Date the asset was purchased.

e. Scan and Email the documentation to support the Assets Purchased.

Stock on Hand

1. Review Stock on Hand to determine if any of the following needs to be taken into consideration when valuing the Stock on Hand:

a. Obsolete stock.

b. Damaged stock.

c. Date expired stock.

In Conclusion

As previously mentioned the above these tasks should be completed between now and the 31st March. However this caption comes to mind.

During my introduction to Profit First, I was introduced to Parkinson’s Law. I found that the quote “work expands to fill the time available for its completion”is a common productivity proverb based on Parkinson’s Law. So if you give a task, as in this case, Twenty-One (21) days, it’s going to take you Twenty-One (21) days to complete this task.

Therefore, I strongly recommend that you set a target to have this task done in Fourteen (14) days i.e. by the 24th March.

Thank you for taking the time to read this. I trust that the above will be helpful and if there is any aspect that you wish to discuss further please contact us.

Disclaimer:This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.